HD30.28.C73

Creating a Business Plan: The Basics 1 Getting Started 3 Quick tips for clarifying the purpose, audience, and needed information for your business plan. Why have a business plan? 4 What’s your purpose? 4 Who’s your audience? 5 What information will you need? 7 Anatomy of a Business Plan 11 A preview of the different parts and structure of a business plan. The opening, body, and attachments 12 Typical structure for a business plan 12 Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012 Cover Page and Table of Contents 15 What to include in the first elements your readers will look at. Preparing the cover page 16 Developing the table of contents 16 Executive Summary 17 How to provide a helpful summary of your plan for readers. Including the right information 18 Formal executive summaries 19 Executive summaries as mission statements 21 Business Description 23 Tips for briefly summarizing your business. Introducing your business 24 Incorporating the right details 25 Highlighting your product or service 26 Business Environment Analysis 29 Strategies for conveying your business’s potential. Understanding industries and markets 30 Asking the right questions 31 Industry Background 33 How to clarify the big picture. Defining existing products and services 34 Sizing the industry 34 vi Contents Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012 Identifying important trends 35 Anticipating barriers to entry 36 Competitive Analysis 39 Ways to size up potential rivals. Identifying your competitors 40 Distinguishing your business from rivals 41 Assessing threats from the competition 41 Market Analysis 47 Strategies for clarifying who your customers will be. Assessing the market’s size and growth 48 Defining your target market 49 Articulating your value proposition 49 Marketing Plan 55 Tips for showing how you will attract customers. Using your marketing plan as a road map 56 Developing your marketing plan 57 Defining your marketing mix 59 Operations Plan 67 How to articulate your business’s daily activities. Understanding operations 68 Determining breakeven point 68 Identifying other key success factors 69 Contents vii Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012 Management Summary 71 Ways to introduce your management team. Describing your team members’ qualifications 72 Introducing the team as a unit 74 Financial Plan 77 Suggestions for showing how the numbers will work. Anticipating readers’ concerns 78 Specifying your business’s capital requirements 79 Providing financial projections 81 Articulating your assumptions 82 Conducting breakeven analysis for sales 84 Assessing risk and reward 84 Anticipating financial returns 86 Attachments and Milestones 89 What to include at the end of your plan. Providing attachments 90 Stipulating milestones 90 Tips and Tools 93 Tools for Creating a Business Plan 95 A workbook to help you create a simple income statement, balance sheet, and cash flow statement for your business. viii Contents Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012 Test Yourself 110 A helpful review of concepts presented in this guide. Take it before and after you’ve read the guide, to see how much you’ve learned. Answers to test questions 11 To Learn More 116 Further titles of articles and books if you want to go more deeply into the topic. Sources for Creating a Business Plan 12 Contents ix 0

Every business needs a business plan--a plan to meet the expected and unexpected opportunities and obstacles the future holds. This book will help you take a long, hard look at each element of the plan and show you how to communicate the right message to the right people, and maximize the chances of getting your business launched.